Correlation Between Baker Boyer and Bank Utica

Can any of the company-specific risk be diversified away by investing in both Baker Boyer and Bank Utica at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Baker Boyer and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baker Boyer Bancorp and Bank Utica Ny, you can compare the effects of market volatilities on Baker Boyer and Bank Utica and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baker Boyer with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Boyer and Bank Utica.

Diversification Opportunities for Baker Boyer and Bank Utica

0.14

Correlation Coefficient

Baker Boyer  Bank Utica

Average diversification

The 3 months correlation between Baker and Bank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baker Boyer Bancorp and Bank Utica Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Utica Ny and Baker Boyer is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baker Boyer Bancorp are associated (or correlated) with Bank Utica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Utica Ny has no effect on the direction of Baker Boyer i.e., Baker Boyer and Bank Utica go up and down completely randomly.

Pair Corralation between Baker Boyer and Bank Utica

Given the investment horizon of 90 days Baker Boyer Bancorp is expected to under-perform the Bank Utica. But the pink sheet apears to be less risky and, when comparing its historical volatility, Baker Boyer Bancorp is 2.01 times less risky than Bank Utica. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Bank Utica Ny is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  47,589  in Bank Utica Ny on May 7, 2025 and sell it today you would earn a total of  2,311  from holding Bank Utica Ny or generate 4.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Baker Boyer Bancorp  vs.  Bank Utica Ny

Baker Boyer Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Baker Boyer Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Baker Boyer is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Bank Utica Ny

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Utica Ny are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Bank Utica is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Baker Boyer and Bank Utica

The main advantage of trading using opposite Baker Boyer and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Boyer position performs unexpectedly, Bank Utica can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bank Utica will offset losses from the drop in Bank Utica's long position.

The idea behind Baker Boyer Bancorp and Bank Utica Ny pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.